Turnkey Contracts in Inter-Firm Strategic Partnerships

Abstract

The intensifi cation of inter-fi rm rivalry in the global market objectively stimulates the search for new forms of strengthening and expanding positions by business entities. Signifi cant changes have taken place in this area in recent years – companies have started to conclude inter-fi rm strategic partnership agreements. Within the framework of such agreements fi rms cooperate in production and sales. One of the interesting areas of inter-fi rm partnership cooperation has become a modifi cation of the previously practiced turnkey contract terms and conditions. A new area of cooperation is the inclusion in the contract at the customer’s request the terms providing for designing drawings of a new facility, and aft er delivery of the equipment, its installation and commissioning – maintaining and improving the performance of the new enterprise for several years, and aft er many years of trouble–free operation transferring ownership of the facility to the customer. In some cases, the customer, having obtained ownership of the new facility, leases it to the contractor for further use in production.